Abracadabra lifts Cauldron rates and pauses incentives to curb MIM stablecoin depeg
Abracadabra has moved to address a worsening depeg of its Magic Internet Money (MIM) stablecoin by raising rates across its Cauldrons. Multiple reports say the measures are intended to encourage debt repayment and reduce MIM supply as the dollar peg breaks again, including after MIM reportedly fell near or below $0.50 [1] [2] [3].
According to coverage of the protocol’s response, Abracadabra also paused incentives and implemented an emergency plan aimed at stabilizing MIM back toward its $1 peg. The actions underscore how liquidity stress in DeFi lending and stablecoin systems can rapidly affect market confidence and operations [2] [4].
Abracadabra’s emergency rate increases and related incentive changes reflect an effort to limit further MIM supply expansion and support recovery amid continued peg instability [1] [3].
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Citations
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- 1Abracadabra raises interest rates as MIM stablecoin depeg worsensCrypto Briefing• Jun 25, 2026
- 2Abracadabra’s MIM crisis deepens as dollar peg breaks againcrypto.news• Jun 25, 2026
- 3Abracadabra takes emergency action as MIM stablecoin depeg worsensCointelegraph• Jun 25, 2026
- 4Abracadabra Launches Emergency Plan After MIM Stablecoin CrashesCoinpaper• Jun 25, 2026
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